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HomeMy WebLinkAboutMN-B&A-1993-11-11 - Budget Meeting BUDGET AND ADMINISTRATION COMMITTEE BUDGET MEETING 7 :30 P.M. NOVEMBER 11, 1993 MINUTES Present: Committee Members : Booth, Johnson, Berg, Romanowski Committee Members Excused: Daley Other Alderpersons Present: Schroeder, Hoffman, Efroymson, Blanchard Alderpersons Excused: Golder Others Present: Mayor - Nichols City Controller - Cafferillo Deputy Controller - Thayer Asst. Supt. Public Works - Ferrel Commons Coordinator - Deming Fire Chief - Wilbur Deputy Fire Chief - Dorman City Chamberlain - Parsons `./ Members of the Council Elect Members of the Board of Fire Commissioners Members of the media 1 . Opening Comments Chairperson Booth stated that the 1994 Budget ground rules will be the same as in past years, which are as follows : A. A motion will be made to accept the Mayor's Budget subject to all amendments B. Five (5) members of Council will represent a quorum C. All department budgets will have the possibility of being amended until the adoption of the final 1994 Budget on December 1, 1993 D. The votes on department budgets will be passed by the majority of those members in attendance (i.e. : if ten members are present, it would take six votes for a majority) � 1 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 Chairperson Booth stated that the agenda for this meeting is as follows : A. Mayor/Controller Budget Overview B. Council's areas of concern for the 1994 budget C. Specific Budget Items : - Mayor' s Budget - Commons Advisory - Legislative - Finance Department (including Traffic Violations, Personnel, Purchasing) - Elections - Records Management - Fire Department Members of the public were asked to speak on the budget; no members spoke. 2 . Mayor's Budget Statement - Overview of 1994 Budget Mayor Nichols stated to the Committee that his 1994 Budget includes the following items : �./ A. A total Budget of $33, 017, 818 (including Water Fund - $2,045, 295; Sewer Fund $2, 608, 844; Joint Activity Fund - $2, 021, 178; and a Solid Waste Fund of $991, 734) B. A General Fund Budget of $25, 350, 767 C. No lay-offs D. No Property Tax increase E. The following increases in Budgets as compared to 1993 : 4 . 1% increase for the Water Fund 4 . 1% increase for the Sewer Fund 7 .5% increase for the Joint Activity Fund 6 . 1% increase for the General Fund 2 . 7% decrease for the Solid Waste Fund 5. 7% increase for the total budget overall 2 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 7 . 4% increase in Revenues (based on increased revenues for sales tax and County/City agreement for Youth Development & Transit) Mayor Nichols explained that every attempt was made to keep the property tax at a zero increase. He pointed out that for every $70, 000 in increases to his proposed budget, the Council can expect a lis increase in property tax. He explained that all department heads were in agreement with his proposals, but he stated that the Department of Public Works budget will be the toughest budget to discuss . Nichols explained that the 1994 budget is the first step toward a program budget for all departments, therefore, in some areas it will be difficult to compare amounts with previous years . He explained that with his 1994 budget, he has continued his support for Community Services, Youth Services, and Community Policing activities . Nichols stated that one item, which was not in his 1994 Budget, and he would like Council to strongly consider this proposal, is $10, 000 for City Employee Awards for exceptional City service. He briefly explained the program components included the possibility that ten ( 10) awards could be given out for $1, 000 each to City employees . He suggested that these awards would not be part of the base pay. Controller Cafferillo explained to the Committee that the 1994 budget does include a Sales Tax Revenue inflation factor of two (2%) percent, or $135, 000, but that the City will not reach its 1993 projected sales tax revenue, due largely in part to $180, 000 in prior period sales tax adjustments by the State. It was noted that $1, 000, 000 of sales within the city represents a $20, 000 increase of sales tax revenue to the City. 3 . Alderpersons Concerns for the 1994 Budget The following items represent the areas of concern that each of the alderpersons raised in relation to the 1994 Budget: Alderperson Berg presented his concerns as follows : A. Zero property tax increase is a good goal B. Deletion of the DPW yard waste pickup C. Southside Center funding increase D. Policing Program at Southside Center 3 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 Alderperson Hoffman presented his concerns as follows : A. Zero property tax increase is a good goal B. Contingency Account increase C. Sales Tax Revenue estimate may be too high D. Increases in new City departments (i.e. : Southside Center) funding and not increasing budgets for City departments Alderperson Schroeder presented his concerns as follows: A. Decreases in DPW part-time and seasonal maintenance crews for City in general, and specifically The Commons, and the cleanliness of the City Alderperson Johnson presented his concerns as follows : A. Zero property tax increase is a good goal B. Trash tag and water/sewer rate increases C. Police officer volunteer programs D. Sales tax revenue estimate may be too high Alderperson Efroymson presented his concerns as follows : �✓ A. Improve outreach to the community on City activities - dollars should be in the budget for an outreach person B. Parks and Recreation budget reduction Alderperson Romanowski presented his concerns as follows : A. Overall maintenance of the city Alderperson Blanchard presented her concerns as follows : A. Good start at program budget for all departments B. Good to see a move away from other costs capitalized C. Overall Public Works Budget including the reasons for a "dirty city" D. Increase needed in Engineering Department E. Transit Budget F. Community is fed up with all forms of government for increasing taxes Chairperson Booth presented his concerns as follows : A. Zero property tax increase is a good goal B. Capitalized items moved back into General Fund C. Keeping City employees employed 4 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 D. Revenue projections for sales tax may be too high E. Department revenue projections may be too high F. Special Items section in budget clarified to Council G. General Fund employees transferred to Water & Sewer Fund The following motion was made: Place the 1994 Mayor's Budget of $33, 017, 818 on the floor for discussion purposes only. The motion passed 8-0 . 4. Mayor's Budget The Mayor recommended a Mayor' s Department Budget for 1994 in the amount of $68, 888 . Mayor Nichols explained that the increase in his budget reflects the 1994 Mayor salary increase of $6,000 to $38, 000 annually. He also stated that he has placed $6, 000 in his contract line to fund 1994 contracts with various agencies and committees . A discussion followed regarding the contracting process. The Committee asked Mayor Nichols to notify all possible agencies of this money. The following motion was made: RESOLVED, That the 1994 Mayor's Department Budget be approved in the amount of $68, 888 . The motion passed 8-0 . 5 . Commons Advisory Budget The Mayor recommended a Commons Advisory Budget for 1994 in the amount of $39, 979 . Commons Coordinator Deming stated that she supported the Mayor's recommendation for employee awards and funding for various agencies and committees . A discussion followed regarding various accounts within the Commons Advisory budget. Deming stated that her new computer and software were working well, and further training on the equipment will continue. The following motion was made: RESOLVED, That the 1994 Commons Advisory Budget be approved in the amount of $39, 979 . 5 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 Voting results on the motion were as follows : Ayes (7 ) - Booth , Johnson , Berg, Romanowski, Schroeder, Hoffman, Blanchard Nays (0) Abstain ( 1 ) - Efroymson - Conflict of interest because his wife was paid for a performance by the Commons Coordinator The motion passed 7-0-1 . 6 . Legislative Budget The Mayor recommended a Legislative Budget for 1994 in the amount of $73, 300 . Mayor Nichols explained that the only increase in this amount reflects the Council' s salary increase of $5, 000 . Alderpersons ' salaries are $6, 000 each now, and in 1994, they will be $6,500 each. A discussion followed concerning the process by which the Alderpersons Staff Development funds can be released. The U following motion was made: RESOLVED, That the 1994 Legislative Budget be approved in the amount of $73, 300. The motion passed 8-0 . 7 . Finance Department/Traffic Violations Budget The Mayor recommended a Traffic Violations Budget for 1994 in the Amount of $62, 928 . Controller Cafferillo stated that the only increase in the Traffic Violations budget from 1993 is a $7,500 increase in the Office Expense account reflecting an increase in postage. He explained that the increased postage cost shall allow the Traffic Violations Department to have a more effective and timely enforcement of traffic tickets . He stated that this will not increase the number of tickets issued, but instead improve the collection process of outstanding traffic tickets . Cafferillo explained that because of this increased collection process, the City' s 1994 parking ticket revenue has been estimated to increase by $50, 000 . 6 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 City Chamberlain Parsons explained that because of the new hand-held computer ticket system, her office has more time to devote to the ticket revenue collection process. After a brief discussion regarding various other accounts within the Finance Department Budget, the following motion was made: RESOLVED, That the 1994 Traffic Violations Budget and the Finance Department Budget be approved in the amounts of $62, 928, and $434, 744 respectively. The motion passed 8-0 . 8 . Purchasing Department Budget The Mayor recommended a Purchasing Budget for 1994 in the amount of $30, 521 . Controller Cafferillo stated that there is no change to Purchasing Budget compared to 1993 . He explained that the purchasing activity for the City is shared by Deputy Controller Thayer and City Buyer Baker. The following motion was made: RESOLVED, That the 1994 Purchasing Department Budget be approved in the amount of $30,521 . L The motion passed 8-0 . 9 . Personnel Department Budget The Mayor recommended a Personnel Department Budget for 1994 in the amount of $179, 136 . Controller Cafferillo explained that all Personnel employees will be full time in 1994 . A discussion followed concerning the 435 Contracts account. Cafferillo explained that the Contracts line is mainly used for the hiring of an outside labor consultant to assist and train City staff in various City Union negotiations. He stated that the contract is an open-ended contract. Cafferillo explained that the intent of the City is to use the outside consultant less and less during future negotiations . After a brief discussion regarding the contract and Personnel budget, the following motion was made: RESOLVED, That the 1994 Personnel Department Budget be approved in the amount of $179, 136 . The motion passed 7-0 . Alderperson Schroeder was absent when the vote was taken. 7 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 10 . Elections Budget The Mayor recommended an Elections Budget for 1994 in the amount of $38, 100 . Controller Cafferillo stated that the change to this budget reflects a decrease in cost, due to the County, for related election expenses . He explained that there is a current opinion by the State Comptroller's office objecting to the chargebacks by the County to the City for indirect costs related to election expenses. He stated that the 1994 budget amount of $34, 000 for Account 435 relates to the payment of only direct election expenses . Cafferillo explained that the City has not made any payments to the County for election expenses in 1992 and 1993, but did make payments in 1991 . He stated that if the court case is overturned, then the City will encumber the 1993 amount to pay the County. The following motion was made: RESOLVED, That the 1994 Elections Budget be approved in the amount of $38, 100 . The motion passed 7-0 . Alderperson Schroeder was absent when the vote was taken. 11 . Records Management Budget The Mayor recommended a Records Management Budget for 1994 in the amount of $11, 921 . Controller Cafferillo explained that this amount reflects a State grant currently underway for records management City-wide, administered through the Clerk' s office. A discussion followed concerning the Equipment Account. Deputy Controller Thayer explained that a one-time equipment purchase will occur before the end of 1993 for the purchase of a movable records storage unit in City Hall. The following motion was made: RESOLVED, That the 1994 Records Management Budget be approved in the amount of $11, 921 . The motion passed 7-0 . Alderperson Schroeder was absent when the vote was taken. 12 . Fire Department Budget The Mayor recommended a Fire Department Budget for 1994 in the amount of $3, 265, 761 . Fire Chief Wilbur stated that the 1994 budget proposal reflects a year of transition for the Fire Department. He explained that staffing plans are now in effect to better utilize the Department's staff. He also 8 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 stated that he supports the Mayor' s early stages of a program budget, as the Fire Department will also continue its ultimate goal to a total program budget. He stated that, in 1994, he will, with the assistance of the Board of Fire Commissioners, take a further look at the Department and make necessary changes to allow the department to become more effective and efficient without jeopardizing safety needs . A discussion concerning the 435 account for Contracts followed. Alderperson Blanchard stated that she would like to add $950 to the Department's budget so that a person may be hired to take minutes at the Board of Fire Commissioners meetings . She explained that it was difficult to operate the Board effectively without such a person. The following motion was made: RESOLVED, That Account A3410-435 Contracts be increased by $950 to reflect the hiring of an individual for stenographic services of 10 hours a week for 1994 . The motion passed 7-0 . Alderperson Schroeder was absent when the vote was taken. A discussion concerning the overtime account followed. Chief Wilbur explained that he had requested $128, 310 for 1994 overtime. The Mayor recommended only $90, 000 in this account for 1994 . Chief Wilbur stated that items to be cut from this line were as follows : - $29, 000 Quality Training Staffing Costs - 3,592 Contract increase - 3, 918 Staff Meetings - 1, 800 Fire Investigations Wilbur explained that because of improvements in staffing schedules and employee leave problems, he felt the department could do most of the above items within the $90, 000 allocated by the Mayor. A discussion concerning the Equipment accounts followed. Deputy Chief Dorman explained the need for all the equipment requested, including 20 new pagers and 30 sets of mattresses . Chief Wilbur also explained that the Fire Department will be engaged in increased code enforcement activity in 1994, which will generate a greater revenue for the City. 9 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 Controller Cafferillo stated that salary increases are reflected in the 1994 Fire Department Budget for firefighters only, as they are the only Fire Department personnel to have a contract in place. After a discussion concerning other Fire Department accounts, including the $7, 000 located in the Capital Fund for purchase of a small fire vehicle from the Capital Reserve Account, the following motion was made: RESOLVED, That the 1994 Fire Department Budget be approved as amended in the amount of $3, 266, 711 . The motion passed 8-0 . The next budget meeting is November 16th at 7 : 30 P.M. The meeting adjourned at 9 :45 P.M. 10 B & A COMMITTEE - BUDGET MEETING NOVEMBER 11, 1993 The following is a summary of Budget Adjustments : Mayor's Recommendation for Appropriations $25, 350, 767 Increase Account A3410-435 Contracts for increase of Steno Services for Board of Fire Commissioners 950 Mayor' s Adjusted Recommendation as of the conclusion of 11/11/93 B&A/COW meeting $25, 351, 717 10